The scarcity of debt available to buyout firms has led some to think creatively about how they finance deals. Two UK-based groups, Gresham Private Equity and Dunedin Capital Partners, have taken the unusual step of underwriting the debt used to back their own deals.

Last month, Gresham acquired five units from listed talent management agency Formation Group and combined them to form James Grant Group. The new business manages stars including music mogul Simon Cowell (pictured), former tabloid editor Piers Morgan and celebrity hypnotist Paul McKenna. In a first for the firm, it provided 100% of the £21m (€24m) enterprise value of the deal, using both equity and debt.